The New York Times is reporting that the majority of states did not save up enough money in the good times to pay unemployment benefits in recession, and have borrowed $billions from the federal government. One reason is that businesses successfully lobbied for lower unemployment taxes. "Right now, 30 states owe money to the federal government for their unemployment programs. Many of them tried to keep their unemployment taxes low in recent decades as states have competed with one another to lure companies and jobs. Now, although unemployment taxes are low by historic standards, the states face the strong possibility that they will have to take action at the worst possible time, raising taxes on employers at a time of low hiring, and cutting benefits when they are most needed."
If you outsource everything to China right now, your business would have benefited from those lower taxes in the past and won't be around to pay that money back. But if you start a new business today you'll get socked with the higher taxes to offset what was not paid in the past. This is just one example of what is happening, and will be happening.
In a more fair world, only those businesses that were around to benefit from lower taxes would pay the added unemployment insurance surcharges. New businesses, the ones needed to create the jobs of the future, would be exempt. But that’s now how it has worked in the unemployment insurance system. And that is not how it is likely to work elsewhere, given that the same people backed by the same interests are in charge.
Here is the level of unemployment insurance tax revenues for New York State and the U.S. for selected years. For New York: 1972 $3.73 in unemployment insurance tax revenues per $1,000 of state residents personal income. In 1987 $4.11; in 2000 $2,71; in 2007 $2.44. For the United States in 1972, $3.17 per $1,000 of personal income. In 1987, $4.48; in 2000 $2.34; in 2007 $2.72.